Danske with CNY thoughts:
- USD/CNY has taken another leg higher lately on a stronger USD and wider US-China spread.
- Relative rates clearly in favour of higher USD/CNY. US money market rates now far above Chinese.
And highlight some of the known issues facing China:
- global recession fears, more US restrictions on Chinese tech, continued property crisis and weaker CNY
- PMIs dropped back in August, but the credit impulse is still robust. Retail sales surprised to the upside in August but remain weak. Confidence is low. The property sector is still in a deep crisis although stress among developers has eased somewhat lately.
Offshore yuan, CNH, update:
Still ahead from China today: